A farmer plans to spend $110,000 to plant pomegranate bushes. It will take 4 years for the bushes to provide a usable crop. He estimates that every year for 20 years after that he will receive a crop worth of $10,500 per year. Required: (i) If the discount rate is 9%, calculate the NPV of this investment.  (ii) Should the farmer invest in planting the pomegranate bushes?  (iii) Discuss what incentives the government can provide to the farmer to make the investment more worthwhile.

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Real Estate

Real estate means ownership of land along with the assets and natural resources that exist on the land. These properties are in real/physical form which is tangible. Real estate simply means land or addition made to land permanently like constructing a residence or different buildings. People invest in real estate to either reside or for wealth creation. Many people investing in real estate further lend the place for occupation or businesses in return for a monthly payment.